Bill > HB3301

This bill establishes a new Permanent Public School Fund in the state treasury, which will receive $10 million at the start of each state fiscal biennium. The fund will be invested in a mix of cryptocurrencies, corporate bonds, municipal bonds, and U.S. Treasury bills. The legislature can only use the interest and earnings generated by the fund, which must be directed toward two specific purposes: reducing school district maintenance and operations ad valorem (property) taxes by lowering the state compression percentage, or funding prekindergarten programs. Importantly, the principal amount of the fund cannot be spent, only its investment earnings. The bill represents an innovative approach to school funding by creating a dedicated fund with specific investment parameters and restricted use of its generated income. The new fund will take effect on September 1, 2025, giving state agencies time to prepare for its implementation. By focusing on tax reduction and early childhood education, the bill aims to provide financial relief to school districts and support early learning opportunities for children.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3301